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Five real-life demographic segmentation examples

Published: April 17, 2025 by Erik Lund, Lead Consultant

Demographic segmentation examples

Not all customers are the same, so why waste your budget marketing to them like they are? McKinsey research shows that 71% of consumers want personalized shopping experiences, and 76% get frustrated when they don’t have them. That’s where demographic segmentation comes in.

But what is demographic segmentation, exactly? We define it as a process that helps you categorize your audience into meaningful demographic groups so you can reach the right people with impactful custom messages.

Businesses across industries are partnering with Experian to power smarter decisions and better results through solutions like demographic segmentation — but what does this look like in action? This article breaks down five real-world demographic segmentation examples, showing how businesses have worked with us to drive measurable success so you can see exactly how it can work for you.

What is demographic segmentation?

Demographic segmentation involves dividing your audience into smaller, more specific groups based on shared demographics like income, education, gender, job, family status, and more to gain a more granular understanding of your brand’s target segments. The better you know your audience, the better you speak to their unique needs — and the more effective your campaigns will be, as you’ll be able to target each segment with highly personalized content that resonates.

For instance, a company might market a new tech gadget to young adults in one way while promoting the same product to families with young children in a completely different way, ensuring the message speaks to each group’s lifestyle and priorities.

Demographic segmentation attributes

Some of the most common attributes used in demographic segmentation include:

Age

Each age group has different wants and needs. A new video game might catch the eye of teenagers, while a retirement plan is more likely to appeal to someone in their 50s or 60s.

Gender

Gender impacts preference for certain products, from fashion to gadgets, so knowing who you’re talking to helps make your marketing more relevant.

Income

Someone with a higher income might be more likely to purchase premium products, while someone on a budget will respond better to discounts or value-based offers.

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Education

The level of education a person has can influence what kind of messaging will resonate with them, whether it’s complex or more straightforward.

Occupation

A marketing message targeting busy professionals might differ from one aimed at students or retirees. Occupation can tell you what’s important to a person in terms of their needs and lifestyle.

Family Status

A family with young kids likely has different priorities than a single person or a couple without children. You can adapt your messaging to be more relevant to what matters most to them, like convenience or value.

Benefits of using demographic segmentation

Demographic segmentation offers several valuable benefits for marketers. Here’s why it’s one of the most commonly used and effective ways to target audiences:

  • Improved targeting and personalization: Demographic segmentation powers highly customized campaigns so you can cater to different income levels, family structures, job types, and so forth. B2C brands can provide offers based on factors like age, income, and gender, while B2B brands can target by occupation to reach decision-makers.
  • Better product and service development: Understanding which demographics use your product or service is a great way to inform future improvements.
  • Higher engagement: With highly customized content, you can speak directly to specific demographic groups and increase engagement.
  • Cost efficiency: As you target the most relevant segments, you optimize your spending around the most likely buyers and will see better returns.
  • Increased conversion and retention: Relevant, targeted messaging leads to higher conversion rates, and when people feel understood, they’ll want to keep coming back.
  • Clearer customer insights: Demographic data provides precise, actionable insights for refining your marketing strategy.
  • Simplicity and effectiveness: Demographic insights are immediately actionable and easy to implement, which gives you a great starting point for focused campaigns.

When to use other segmentation types

While demographic segmentation provides valuable consumer insights, there are times when other approaches may offer a more effective strategy:

  • Your business provides location-dependent services. If you strictly serve a local area, geographic segmentation would be more effective in targeting customers based on location.
  • Your business offers hobby-centric products or services. Psychographic segmentation (based on interests, lifestyle, or values) may be more relevant than demographics alone for products related to specific interests or hobbies.
  • You have access to detailed behavioral data. If you collect data on customer behavior (like browsing history or purchase patterns), behavioral segmentation would allow for more personalized targeting than demographics.
  • You’re selling high-end luxury products. While income is a useful demographic variable, psychographic factors like values, aspirations, and lifestyle better capture the desires of luxury consumers.
  • Your target audience shares similar behaviors, regardless of demographic factors. Behavioral or psychographic segmentation might offer more insight if your customers engage with your product or service based on shared behaviors rather than demographic traits.
  • Your product or service targets specific needs or pain points. Segmenting by need or issue rather than traditional demographic variables would likely yield better results if you’re offering a solution to a particular problem (like a health-related product).

How our customers are using demographic segmentation to produce tangible results

Demographic segmentation is about knowing your audience and using data to create marketing strategies that drive measurable outcomes. Let’s look at some real-world use cases from brands like yours that have been successful in this effort, working with Experian to translate demographic insights into significant business growth.

Use case #1: Identifying customer spending potential to boost growth for a retail chain

Objective

A large retail chain wanted to understand the spending potential of each customer in their stores. Their goal was to uncover and maximize untapped spending potential.

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Solution

Experian conducted an analysis to identify the top demographic factors that drove spending in the retail store the previous year. Our consultants found the four key drivers were:

  • Age
  • Income
  • Family structure (household composition)
  • Location/region
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Results

By combining these attributes to create segments, we uncovered two valuable annual estimates:

  1. Potential spend: A conservative estimate of how much a customer could spend if they reached the top 20% of spenders within their specific demographic segment (based on data from the highest spenders).
  2. Unrealized spend: The difference between a customer’s annual potential spend and their current spend. An estimate of how much more they could be spending each year.

These demographic segments provided the marketing strategy the retail chain used to target $1.1 billion in unrealized spend. This revealed how much additional revenue could be captured by targeting the right customers with tailored marketing and offers through demographic segmentation.

Use case #2: Helping a financial institution identify regional DE&I opportunities

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Objective

A large financial institution needed help identifying regional diversity, equity, and inclusion (DE&I) opportunities. They wanted to better prioritize their outreach to underserved communities in the Los Angeles area.

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Solution

Experian’s Custom Analytics team provided the data and insights to pinpoint specific areas needing attention. We used three key indices to analyze the region:

  • Income index: Measured each underserved economic group by comparing the percentage of low-to-moderate income consumers against the entire L.A. area.
  • Ethnicity index: Measured the percentage of consumers by ethnicity, such as African-American, Hispanic, Asian, and others, against the entire L.A. area.
  • Credit index: Identified potential credit disparities by looking at the average FICO score and the percentage of customers with credit accounts against the entire L.A. area.
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Results

Our client received an analytics dashboard to track and report these metrics, providing clear, traceable data to prioritize DE&I outreach. This dashboard helped them measure progress toward more inclusive practices.

Use case #3: Segmenting a health supplement ambassador program for enhanced engagement

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Objective

A health supplement company wanted to identify specific segments within their ambassador program to provide better support and increase engagement.

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Solution

Experian’s Custom Analytics team developed tailored customer segments to address specific needs and behaviors. These segments included:

  • Young and independent: Younger, lower-income singles or starter households who are just beginning to establish their own lives.
  • Families with ends to meet: Young and middle-aged families with kids who are budget-conscious, often using coupons and enjoying fast food.
  • High-end families: Middle-aged families with kids and high incomes, financially secure big spenders who also give to charities.
  • Empty nesters: Older households with no kids who focus on cooking at home and may have more disposable income.
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Results

Segmenting at registration allowed for more effective communication and engagement with prospects. Customized messaging, guided by customer demographics and purchasing behaviors, improved acquisition and retention by helping the right messages reach the appropriate individuals through their preferred channels.

Use case #4: Comparing customer bases: Insights for a retailer across two cities

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Objective

A national retailer with locations in two major cities (their home base city and a recent expansion city) wanted to understand how different their customer base was in each city. They aimed to uncover key demographic and behavioral differences to refine their marketing strategies and ensure each location received the most relevant messaging and promotions.

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Solution

Experian’s Custom Analytics team analyzed each city’s customers across a wide range of characteristics:.

  • Demographics: The expansion city had a younger population with more families, while the home base city had an older and more established customer base.
  • Purchasing behavior: Customers in the expansion city spent more per transaction than those in the home base city.
  • Preferred marketing approach: Customers in the home base city were likelier to be Brand Loyalists, responding well to familiar, trust-driven messaging. Shoppers in the expansion city were Savvy Researchers who responded better to value-based content and product comparisons.
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Results

Using these insights, the retailer tailored its marketing approach to align with each location’s customer base:

  • Home base city: Focused on maintaining loyalty by emphasizing brand trust and highlighting long-term customer benefits.
  • Expansion city: Positioned marketing to appeal to younger, family-focused consumers to showcase high-value purchases and competitive pricing

These adjustments led to improved engagement and higher sales in both cities.

Use case #5: Optimizing direct mail to help a nationwide retailer maximize impact on a limited budget

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Objective

Facing a shrinking marketing budget, a nationwide retailer needed to refine their direct mail strategy to reach the right customers while reducing costs.

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Solution

Experian’s Custom Analytics team developed a comprehensive dashboard summarizing two dozen recent direct mail campaigns, which allowed the retailer to:

  • Understand the demographic composition of high-response customers across different regions.
  • Identify key patterns in response rates, helping them pinpoint the most receptive audiences.
  • Discover that the Power Elite Mosaic Group representing affluent, high-spending households comprised only 17% of their mailed audience but accounted for 47% of responses.
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Results

With these insights, the retailer restructured their direct mail strategy to target the highest-performing segments. Changes like these led to a 30% reduction in mailing costs while retaining 92% of sales, proving that strategic segmentation can drive efficiency without sacrificing revenue.

Explore demographic segmentation with Experian’s Analytics Consulting team

Now that we’ve provided a demographic segmentation definition and given you some real-world demographic segmentation examples, it’s time to get a deeper understanding of your audience.

Our experienced consultants utilize Experian Marketing Data to create the demographic segments you need to enhance targeting and uncover hidden opportunities.

Key features

  • Expertise and experience: Our consultants bring a wealth of analytic knowledge and industry expertise, so you can utilize the latest techniques and best practices.
  • Customized solutions: We provide tailored, custom solutions like demographic segmentation to address your specific needs and challenges.
  • Data-driven insights: Our expertise in Experian Marketing Data quickly delivers valuable insights to optimize operations and identify new opportunities.
  • Industry perspective: As external experts, our consultants offer the unbiased perspective necessary to see beyond internal biases and make objective decisions.
  • Competitive advantage: Utilizing our analytic consultants gives your business a competitive edge by understanding market trends, customer behavior, and potential risks faster than your competitors.

Connect with us today to see how our data and expertise can improve  your targeting, personalization, and campaign performance.

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Whether your customers are buying backpacks, stocking the fridge, or searching for school essentials, these insights will help your campaign pass with flying colors. New year, new gear-er From teens picking out their first-day outfit to college students stocking up for dorm life, these audiences represent a wide range of priorities, needs, and spending behaviors. They’re also heavily influenced by trends, technology, and value-driven purchases. Don’t overlook these five high-potential audiences in your strategy: Big-Box Electronics Stores: High Spenders Amazon Frequent Spenders Department Store Deal Shoppers In Store Spenders Teen Apparel (Clothing): Online and In Store High Spenders Dell Computer and Apple Mac Purchaser  Weeknight TV watchers Back-to-school season is also back-to-routine season. Families are gathering for more shared TV time in the evenings—especially in August and September. This makes co-viewing households a prime audience for messaging tied to school-year prep. Rethink your back-to-school approach with these five overlooked segments: Co-Watchers  Co-Watchers with Children Cord Cutters: Recent Engagement Channel Preference: Streaming TV Digital Video Parenting personas Targeting by household structure helps tailor messaging to the right family dynamic—whether it’s parents with toddlers or households with college students. Four audiences you might be missing this back-to-school season: Digital Moms and Dads Sports Utility Families Colleges and Cafes Kids and Cabernet School-season meal planners Food and grocery shopping routines shift during the school season. These audiences are ideal for promotions tied to lunch prep, after-school snacks, and weeknight meals. Add these four under-the-radar audiences for back-to-school success: Online Grocery Delivery Services: High Spenders Grocery Stores: High Spenders Fast Food/QSR Frequent Spenders Fast Food/QSR Pizza Frequent Spenders Core back-to-school shoppers Of course, you’ll want to add traditional back-to-school audiences to your strategy. These audiences are highly engaged and often the decision-makers, making them ideal for marketers looking to drive purchase intent early and often. Here are four key back-to-school audiences you can target–all are available by life stage to reach PreK, elementary, middle, and high school households: Back to School Supplies Back to School Moderate Spend Back to School High Spend Back to School Apparel Make the grade with Experian this back-to-school season As marketers gear up for the back-to-school season, it’s the perfect time to sharpen your strategy and connect with back-to-school shoppers. Whether you’re building tried-and-true segments or exploring more unexpected, high-potential groups you might have not considered, Experian can help you reach the right audience. If you’re looking to create targeted segments for activation across digital and TV or gain insights to guide your campaign planning, Experian has you covered. Need a custom audience? Reach out to our audience team and we can help you build and activate an Experian audience on the platform of your choice. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation. Connect with our audience team You can activate our syndicated audiences on-the-shelf of most major platforms. For a full list of Experian’s syndicated audiences and activation destinations, download our syndicated audiences guide. Explore our other seasonal audiences that you can activate today. View now Contact us Latest posts Appendix New year, new gear-ers  Retail Shoppers: Purchase Based > Shopping Behavior > Big-Box Electronics Stores: High Spenders Retail Shoppers: Purchase Based > Shopping Behavior > Big Box and Club Stores: Amazon Frequent Spenders Retail Shoppers: Purchase Based > Shopping Behavior > Department Store In Store Spenders Retail Shoppers: Purchase Based > Apparel > Teen Apparel (Clothing): Online High Spenders Retail Shoppers: Purchase Based > Apparel > Teen Apparel (Clothing): In Store High Spenders Lifestyle and Interests (Affinity) > Technology > Dell Computer Model Lifestyle and Interests (Affinity) > Technology > Apple Mac Purchaser Model Weeknight TV watchers Television (TV) > Household/Family Viewing > Co-Watchers Television (TV) > Household/Family Viewing > Co-Watchers with Children Experian > Retail Shoppers: Purchase Based > Entertainment > Streaming/Video/Audio/CTV/Cable TV: Cable/Broadcast TV: Cord Cutters: Recent TrueTouch: Communication Preference > Engagement Channel Preference > Streaming TV TrueTouch: Communication Preference > Engagement Channel Preference > Digital Video Parenting personas  Lifestyle and Interests (Affinity) > Personas > Digital Moms Lifestyle and Interests (Affinity) > Personas > Digital Dads Mosaic – Personas – Lifestyle and Interests > Group D: Suburban Style > D15 – Sports Utility Families Mosaic – Personas – Lifestyle and Interests > Group O: Singles and Starters > O53 – Colleges and Cafes Mosaic – Personas – Lifestyle and Interests > Group A: Power Elite > A03 – Kids and Cabernet School-season meal planners  Retail Shoppers: Purchase Based > Grocery > Online Grocery Delivery Services: High Spenders Retail Shoppers: Purchase Based > Grocery > Grocery Stores: High Spenders Retail Shoppers: Purchase Based > Food and Drink > Restaurants: Fast Food/QSR QSR Frequent Spenders Retail Shoppers: Purchase Based > Food and Drink > Restaurants > Fast Food/QSR Pizza Frequent Spenders Core back-to-school shoppers Retail Shoppers: Purchase Based > Seasonal > Back to School Moderate Spend – PreK (Early Ed – PreK)  Retail Shoppers: Purchase Based > Seasonal > Back to School Moderate Spend – Elementary School  Retail Shoppers: Purchase Based > Seasonal > Back to School Moderate Spend – Middle School  Retail Shoppers: Purchase Based > Seasonal > Back to School Moderate Spend – High School  Retail Shoppers: Purchase Based > Seasonal > Back to School High Spend – PreK (Early Ed – PreK)  Retail Shoppers: Purchase Based > Seasonal > Back to School High Spend – Elementary School  Retail Shoppers: Purchase Based > Seasonal > Back to School High Spend – Middle School  Retail Shoppers: Purchase Based > Seasonal > Back to School High Spend – High School  Retail Shoppers: Purchase Based > Seasonal > Back to School Apparel – PreK (Early Ed – PreK)  Retail Shoppers: Purchase Based > Seasonal > Back to School Apparel – Elementary School  Retail Shoppers: Purchase Based > Seasonal > Back to School Apparel – Middle School  Retail Shoppers: Purchase Based > Seasonal > Back to School Apparel – High School  Retail Shoppers: Purchase Based > Seasonal > Back to School Supplies – PreK (Early Ed – PreK)  Retail Shoppers: Purchase Based > Seasonal > Back to School Supplies – Elementary School  Retail Shoppers: Purchase Based > Seasonal > Back to School Supplies – Middle School  Retail Shoppers: Purchase Based > Seasonal > Back to School Supplies – High School

May 05,2025 by Experian Marketing Services

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